The Covid-19 pandemic has enhanced longstanding issues in healthcare while introducing new challenges, driving the need for accelerated growth. The pharmaceutical e-commerce space, in particular, experienced significant pandemic-driven growth, as demonstrated by CVS data showing a 1,000% increase in online prescription orders during the early stages of the pandemic.
In both business-to-business (B2B) and business-to-consumer (B2C) settings, pharmaceutical e-commerce enables efficient and transparent prescription medication purchasing, leading to increased demand for such offerings. It is essential for pharmaceutical sellers and manufacturers to prepare now to keep up with and effectively compete in this rapidly growing market.
COVID-19 Accelerated Healthcare E-Commerce
The pandemic has directly spurred the rapid growth of e-commerce amid various travel restrictions and lockdowns worldwide. According to recent research from Adobe (via Forbes), the shift to e-commerce is permanent, with the entire industry projected to reach a staggering $1 trillion by 2022. This e-commerce boom will continue to include the online healthcare industry, poised to evolve alongside the ever-changing provider and patient needs in this increasingly digital world.
With the global healthcare e-commerce market expected to reach $435.8 billion in revenue by 2025, there is a clear need and demand for online health products and services among businesses and the general consumer population, especially for medications, where online sales are gaining traction.
Pharmaceutical E-Commerce for Providers and Patients
Over the past year, e-commerce giants like Amazon and Alibaba have made significant investments in their online pharmacy operations. Amazon Pharmacy allows patients to order prescription medications through the retailer's platform, while Alibaba Health plans to offer similar services and other essential innovations for both patients and providers. These companies certainly won’t be the last to enter the online pharmacy space, so keep an eye on who is active in the industry and what products and services they offer.
With e-commerce integration, pharmaceutical vendors can provide patients and providers with an easy, efficient way to search for and purchase the medications they need. In a B2C setting, this means patients can buy and receive their prescription drugs from the comfort of their homes. In a B2B context, comprehensive pharmaceutical e-commerce platforms allow providers to navigate the various factors involved in drug purchasing, including current availabilities and prices of different medications, facilitating informed medication spending.
Additionally, transparent purchasing capabilities may compel pharmaceutical manufacturers to become more competitive in their pricing. Currently, it is not widely known how much individual healthcare organizations are paying for their medications, so public e-commerce platforms can provide these organizations with insight into current market pricing, giving them greater negotiating power to secure drugs at lower costs. Online drug purchasing should help hospitals and healthcare systems obtain the medications they need at the best prices, potentially leading to significant organizational cost savings.
The Future of Online Pharmacies
Online pharmacies are creating a new marketplace that must find better ways to verify and validate prescription orders and the medications being delivered. In June, the FDA had to issue a warning about rogue pharmacies emerging that operate illegally, supplying counterfeit and dangerous medications to consumers. It should be easier for the more reputable players to ensure that the medications they provide meet all FDA requirements, but these rogue players can cast a negative shadow on the industry.
Another issue that may arise is the redirection of the medications being delivered. Traditional packages are often taken from unguarded areas, and since medications are being delivered more frequently, there may be an uptick in redirected packages containing drugs, which could exacerbate the opioid crisis the U.S. is currently facing.
Nonetheless, the continued growth of pharmaceutical e-commerce will undoubtedly spark industry innovation aimed at providing the most streamlined method for purchasing prescription medications online. Offering patients and providers the option of online drug purchasing, combined with other helpful technologies such as real-time price monitoring and spending tracking, should create a more straightforward, more efficient overall pharmaceutical experience.
Moreover, with online pharmacies, vendors can expand their businesses while also reaching more patients and providers in need. For instance, patients in rural areas may not live near any pharmacies, making online drug ordering ideal for such populations. On the B2B side, all healthcare organizations benefit from the ease of purchasing and viewing all their options laid out in a single, comprehensive platform.
Pharmaceutical vendors and manufacturers may be considering how they can implement e-commerce capabilities to keep pace with demands from patients and providers. Additionally, with any new technology integration, pharmaceutical organizations interested in e-commerce should evaluate their business’s superfluous assets and unique objectives to start building their execution plan. Once all potential risks and rewards are considered, vendors can then decide whether it makes sense to proceed with the leap to e-commerce.
As the healthcare industry continues to evolve to meet the needs of today’s providers and patients, so too will B2B and B2C pharmaceutical e-commerce offerings and platforms. Pharmaceutical vendors and manufacturers must act now to reap the benefits of this rapidly expanding industry.
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